UK Retail Jobs at Risk from Guaranteed Hours Reforms, Industry Warns
The British Retail Consortium (BRC), representing major UK retailers, has issued a stark warning that more than half of retail jobs could be negatively impacted by upcoming reforms to guaranteed working hours. These changes, part of the Employment Rights Act, aim to enhance protections for workers but may inadvertently make it harder for shops to employ people, particularly young workers in part-time roles.
New Employment Rights and Their Implications
Starting in April, the Employment Rights Act will introduce new safeguards for workers, including improved sick pay, sexual harassment protections, parental leave, and trade union recognition. Further rights, scheduled for next year, include guaranteed hours for those on zero or low-hours contracts, flexible working arrangements, payment for short-notice shift cancellations, and restrictions on fire-and-rehire practices in most cases.
However, the government has yet to finalize key details, such as the maximum number of hours in a low-hours contract and the period over which regular working patterns are assessed to determine guaranteed hours. The BRC advocates that these protections should only apply to contracts of eight hours a week or fewer, with a reference period of at least 26 weeks, or ideally a full year, to better reflect seasonal working patterns and prevent job losses.
Industry Concerns Over Flexibility
Helen Dickinson, chief executive of the BRC, emphasized the critical role of flexible retail jobs in the UK economy. "Flexible retail jobs are a vital part of how millions of people are able to stay in work," she stated. "As the UK’s largest private sector employer, retail provides opportunities for students earning alongside their studies, parents balancing childcare, and those managing health conditions. These part-time roles are not only valued but relied upon across the country."
Dickinson added that while retailers support improving job security, the implementation details are crucial. "If reforms treat flexibility as a problem rather than something workers actively choose, the risk is fewer opportunities and reduced access to work. Government must strike the right balance by targeting genuine bad practice while protecting the flexible roles that underpin employment in retail."
According to BRC analysis, 55% of retail roles are part-time, significantly higher than the UK average of 33%. A survey of 2,000 adults by Opinium for the BRC found that 52% of UK adults consider the ability to flex working hours around their lives important, highlighting the value placed on such arrangements.
Union Perspectives on Worker Protections
In contrast, the shop workers’ union Usdaw argues that the new rights will primarily benefit those in the most insecure forms of employment, particularly women and disabled workers. Joanne Thomas, general secretary of Usdaw, stated, "Retail employment is notoriously dogged by precarious employment practices, and retail workers absolutely rely on basic employment rights, particularly with non-unionised employers. So, the act is very important to staff and crucially helps to protect decent employers from being undercut by the worst who exploit workers."
Thomas emphasized that tackling precarious employment is beneficial for the economy, growth, and individual workers, who deserve a guaranteed wage they can live off. Paul Nowak, general secretary of the TUC, echoed this sentiment, noting that working people need security and predictability to plan their lives, manage finances, and care for children. "It’s no wonder this change is so popular. It will make a massive difference to many families’ quality of life. We can’t afford the status quo," he said.
Nowak highlighted that the right to regular hours and a ban on exploitative zero-hours contracts will significantly improve living standards for workers, urging the government to deliver on its commitments in full.
Broader Impact on the Retail Sector
The debate underscores the tension between enhancing worker protections and maintaining job flexibility in the retail industry. With retail being a major employer in the UK, the outcome of these reforms could have far-reaching effects on employment trends, economic growth, and social equity. Stakeholders from both sides are calling for careful consideration to ensure that reforms address genuine issues without undermining the flexible work model that many rely on.
